Is Sportsman's Warehouse Holdings, Inc. overvalued or undervalued?

As of 6 December 2023, the valuation grade for Sportsman's Warehouse Holdings, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.54 and an EV to Sales ratio of 0.29, which suggest that the market may not be pricing in the risks associated with its financial performance. Additionally, the negative ROE of -15.69% and ROCE of -3.29% further highlight the challenges the company faces.
In comparison to its peers, Sportsman's Warehouse Holdings, Inc. has a less favorable EV to EBITDA of 13.80, while competitors like Haverty Furniture Cos., Inc. show a much stronger P/E of 36.45, indicating a significant disparity in valuation. The company's recent stock performance has been mixed; while it outperformed the S&P 500 over the past month with a return of 9.86% compared to 2.33%, its long-term performance has been poor, with a 3-year return of -63.08% versus the S&P 500's 70.41%. This suggests that despite some short-term gains, the overall outlook remains concerning.